Cost Competitiveness
Competing through lower costs than competitors.
Formula
Cost Competitiveness = Ability to produce at lower unit cost than rivals
Real World
Primark sources garments from Bangladesh, where labour costs are among the world's lowest, enabling it to price T-shirts at under £5 and undercut rivals like H&M on price.
Exam Focus
Always evaluate trade-offs: low-cost production may harm quality or brand reputation — a strong 'evaluate' answer weighs both sides.
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